Spiegel wins Ch. 11 concessions

Judge extends deadline for reorganization plan

Downers Grove-based retailer Spiegel Inc. on Tuesday won U.S. Bankruptcy Court approval to open up to 17 new Eddie Bauer stores and to delay the deadline for filing its Chapter 11 recovery plan.

Spiegel, operating under bankruptcy protection since March, asked the court Nov. 5 for permission to open seven Eddie Bauer stores at determined sites, with the option to open 10 additional stores in unspecified locations as "opportunities arise."

The push to open new Bauer sites comes after the retailer said it would close 60 stores in the chain by the end of this year, including one at the Old Orchard Shopping Center in Skokie.

According to court documents, Spiegel has negotiated leases for three new Eddie Bauer stores in Colorado Springs, Colo.; South Windsor, Conn.; and Lee, Mass. Other stores are planned in Alberta, Canada; Alderwood, Wash.; Short Pump, Va.; and Troutdale, Ore.

Separately, the court approved Spiegel's request to delay filing its bankruptcy recovery plan until Feb. 10. The plan would have been due Nov. 21.

Spiegel said it needed more time so it could tally critical fourth-quarter sales results for Eddie Bauer, which will help determine whether the company is on the path towards recovery. The company noted, however, that "the size and complexity of the case alone" justify the extension.

Spiegel shares, which trade over the counter, were at 9 cents Tuesday afternoon, unchanged from Monday's closing price.